Sansei Technologies, Inc.

Business Details

The Company and its overseas subsidiaries (S&S Worldwide, Inc. and Vekoma Rides B.V.) handle the manufacturing, construction, and sale of amusement machinery such as roller coasters, log flumes, and towers. Concept proposal and design services are provided by FORREC Ltd. The segment targets the United States, East Asia, and the Middle East as its main markets, and generates revenue through a combination of domestic and overseas construction progress and demand for repair parts. This is the Company Group's largest segment, accounting for approximately 63.7% of consolidated net sales (FY2026, ending March 2026).

Recent Overview

Steady progress on large-scale construction projects and resolution of unprofitable projects led segment profit to increase 391.0% year-on-year

In FY2026 (ending March 2026), large-scale construction projects ordered in prior periods, both domestic and overseas, progressed smoothly, and demand for repair parts also remained firm. The absence of the impact of certain unprofitable projects that occurred in the prior period also contributed, resulting in a significant increase in both revenue and profit, with segment net sales of ¥46,573 million (up 30.1% year-on-year) and segment profit of ¥2,310 million (up 391.0% year-on-year). Orders received rose to ¥50,471 million (up 9.2% year-on-year) driven by expanding demand for large-scale projects, and the order backlog increased to ¥68,790 million (up 6.0% year-on-year), which is expected to contribute to sales in future periods. Note that, as certain subsidiaries fell short of their initial business plans, an impairment loss on goodwill and intangible assets of ¥1,026 million was recognized on a consolidated basis.

Key Products

Growth Drivers

• Expansion of orders for large-scale construction projects for domestic and overseas theme parks (FY2026, ending March 2026, orders received of ¥50,471 million, up 9.2% year-on-year; order backlog of ¥68,790 million)
• Securing stable revenue through continued growth in demand for repair parts and maintenance services
• Enhanced international competitiveness through strengthened Group collaboration with S&S, Vekoma, and FORREC
• Active order-taking activities in the growth markets of the United States, East Asia, and the Middle East
• Normalization of profit margin following the resolution of the impact of unprofitable projects and provisions in the prior period (segment profit margin recovered to approximately 5.0% in FY2026, ending March 2026)

Risks

• Risk of occurrence of unprofitable construction projects (in the prior period, segment profit declined significantly due to provisions related to certain unprofitable projects and delayed receivables collection)
• Impact on overseas business costs from US tariffs, foreign exchange fluctuations, and interest rate trends
• Risk of deteriorating profitability due to rising labor costs and raw material prices
• Changes in the order environment due to a downturn in overseas economic conditions (particularly in China and Europe)
• Large goodwill balance (¥6,983 million at the end of FY2026, ending March 2026), with a latent risk of impairment associated with underperformance at certain subsidiaries (an impairment loss of ¥1,026 million was recognized in the current period)